Key policy adjustments signal cooperation, with both sides simultaneously optimizing trade facilitation arrangements

On October 30, 2025, the Ministry of Commerce officially announced the results of the China-US economic and trade team consultations in Kuala Lumpur. Both parties reached multiple agreements on optimizing tariff policies and adjusting trade restriction measures. The implementation of a series of policies will inject stability into China-US economic and trade exchanges and benefit related industries and enterprises in both countries.

According to the consensus reached in the consultations, the US will cancel the additional 10% tariff on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macau Special Administrative Region), the so-called 'fentanyl tariff,' and will also extend the suspension period of the 24% reciprocal tariffs on Chinese goods for an additional year. In response, China will correspondingly adjust its countermeasures against the above US tariffs. Both sides have simultaneously agreed to continue extending certain tariff exclusion measures, retaining flexibility for trade in specific areas.  

It is worth noting that the US also announced a one-year suspension of its '50% penetration rule' export control announced on September 29, further signaling a relaxation of regulatory controls. This policy adjustment covers a wide range of sectors, including consumer electronics, machinery, textiles, and other major categories, involving a substantial portion of the projected US-China trade volume in 2024.

Tariff levels return to a rational range, industry outlook remains positive

Following this tariff adjustment, the structure of tariffs on Chinese goods exported to the US has been further optimized. According to analysis, the previously layered tariffs have been significantly simplified, and for most goods, the tariff levels have returned to the 10% basic rate range (tariffs related to Section 301 still remain for some highly sensitive sectors).

For businesses, reasonable control of tariff costs will effectively improve export profit expectations. For example, manufacturing enterprises that were previously heavily affected by cumulative tariffs will directly benefit from the cancellation of the 10% 'fentanyl tariff' and the continued suspension of the 24% reciprocal tariffs, which will reduce the overall cost of exporting products and alleviate the order loss pressures that some companies previously faced.

Control over highly sensitive areas still exists, and the industry needs to pay attention to long-term planning

Despite this policy adjustment sending a positive signal, trade restrictions in certain sectors have not been completely lifted. The previously announced US policy of imposing high tariffs on certain Chinese-made port equipment will still be implemented as planned. Starting from November 9, 2025, an additional 100% tariff will be levied on ship-to-shore cranes, container chassis, and components, with exemptions only for contracts signed before April 17, 2025.

Industry experts analyze that the results of this negotiation reflect a pragmatic attitude of both China and the US in resolving trade disputes through dialogue. The rational adjustment of tariff measures helps alleviate the pressure of global supply chain restructuring. However, in the long run, the technological competition and regulation in highly sensitive areas will continue. Enterprises need to continually monitor policy developments, optimize supply chain planning, and simultaneously strengthen technological innovation and compliance management to reduce operational risks caused by policy fluctuations.